Livestock Returns:

If the Buyer chooses not to accept the variations and discounted prices for livestock falling outside of specification, the Buyer can return the livestock to the Seller, and must dispatch them within 48 hours from the time they were received. The Buyer and Seller will share the delivery costs in equal proportions for the return of livestock. The livestock must be returned in the same condition as they were received. The Buyer will be subject to the same tolerances, variations and price adjustments as the Seller in returning livestock. The Seller has the right to recover the price adjustment for the loss in condition of the livestock from the Buyer including from the Buyers funds held in escrow.

Shrinkage:

An allowance for shrinkage is to be applied and is considered to be within specification at a fixed rate of 5% over any distance travelled unless otherwise mutually agreed upon in writing by the Seller and Buyer.

Tolerances, Variations & Discounts:

Livestock are to be delivered to the Buyer within the minimum and maximum liveweight range indicated on the assessment. Any livestock delivered outside of the nominated specifications will be discounted as per the Buyer's regular discount schedule, to be provided within two business days of the conclusion of the sale or if the Buyer does not provide a matrix of penalties for livestock outside delivery specifications, then the tolerances will apply as per the table below (unless the Seller and Buyer agree otherwise).

If the tolerances exceed the specifications by more than those outlined in the table below;

Specifications Tolerance
Number of head outside the specified weight range (but within the tolerance on weight range) +/- 5%
Weight tolerance outside of specified weight range +/- 3%
Average Weight There is no claim available on average weight in forward contracts.

The discount to be applied to the purchase price for livestock falling outside defined tolerance on weight range, and/or by numbers exceeding the defined tolerance are as follows (unless otherwise specified or agreed between the Seller and Buyer):

Variation on weight Price Adjustment
Up to 5% 5.0%
5.1%-7.5% 7.5%
7.5%-10% 10.0%
>10% 15.0%

No price adjustment is applicable for livestock within the defined tolerance ranges.